Hanover Insurance Group Announces $500 Million Senior Notes Offering to Refinance Debt.

The Hanover Insurance Group has priced a $500 million senior notes offering with a 5.50% interest rate due September 1, 2035. Proceeds will be used to repay existing debt, including 7.625% senior notes due October 2025 and 4.500% senior notes due April 2026. The offering is expected to close on August 21, 2025. Goldman Sachs, J.P. Morgan Securities, and Morgan Stanley & Co. are acting as joint book-running managers.

The Hanover Insurance Group, Inc. (NYSE: THG) has priced a $500 million senior notes offering with a 5.50% interest rate due September 1, 2035. The company plans to use the net proceeds from this offering to repay its outstanding 7.625% Senior Notes due October 2025 and 4.500% Senior Notes due April 2026, as well as for general corporate purposes [1].

The debt offering is expected to close on or around August 21, 2025, subject to customary closing conditions. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC are serving as joint book-running managers for the offering, which is being made pursuant to an effective shelf registration filed with the Securities and Exchange Commission (SEC) [1].

This strategic refinancing move by The Hanover Insurance Group will reduce interest expenses by replacing higher-rate notes with 5.50% notes, thereby improving financial flexibility. The transaction extends the company's debt maturity profile by approximately 10 years, from 2025/2026 to 2035, which enhances financial flexibility and reduces near-term refinancing pressure [2].

The new debt offering is well-timed, taking advantage of current market conditions before the imminent maturity of the 2025 notes, demonstrating proactive liability management by the company's financial team. The strong institutional backing from Goldman Sachs, J.P. Morgan, and Morgan Stanley signals confidence in Hanover's credit quality and likely ensured competitive pricing terms [2].

For investors, this refinancing provides a clear picture of the company's financial health and strategic planning. The reduction in interest rates will improve The Hanover Insurance Group's financial performance and liquidity position, which could be beneficial for shareholders.

References:
[1] https://www.prnewswire.com/news-releases/the-hanover-insurance-group-inc-announces-pricing-of-500-million-senior-notes-offering-302534108.html
[2] https://www.stocktitan.net/news/THG/the-hanover-insurance-group-inc-announces-pricing-of-500-million-mpq4jg3719al.html